Corpus Christi police checkpoints boost insurance sales

Small firms report spikes in policy purchases

CORPUS CHRISTI - Corpus Christi insurance agencies have seen a spike in auto policy sales since the police department announced it wouldn't tolerate uninsured drivers in 2011.

Corpus Christi police set up random checkpoints throughout the city in the last week aiming to find uninsured drivers, ticket them and, in some cases, impound their vehicles.

The department plans to continue setting up checkpoints throughout the year. Vehicles involved in an accident will be towed automatically if they aren't insured.

That news, and reports of drivers ticketed and cars impounded, prompted people to renew polices or sign up for new coverage, insurance agencies said.

"A third of the people that have come in mentioned that they didn't want to get stopped at a checkpoint," said Randy Russell, who owns Russell Auto Insurance, a company with advertisements geared toward the uninsured. The company's office in Portland has been just as busy, Russell said.

"This is affecting everyone," he said.

January typically is busy for insurance agencies, but sales don't typically pick up until later when people begin receiving income tax returns, said Gloria Ortiz, who owns Affordable Auto & Home Insurance.

Her firm typically gave two quotes a week in December, she said. In the last week, they've given five to eight quotes a day, she said.

"It's been a drastic change for us," she said.

Trinity Insurance Agency has seen a 10 percent spike compared to the same period last year and its current customers have called asking for replacement insurance cards, owner Grace Armadillo said.

"These people need to understand these checks are going on through the whole year," she said.

Not all companies have seen a sales increase. State Farm, the largest insurance provider in Texas, had no noticeable spike, spokesman Kevin Davis said. The local Geico office said there weren't any noticeable trends, and John Asch, who owns Tejas Auto Insurance, said his business is typical for January.

"I think if people take it seriously, we'll start seeing a spike," he said,

Insurance agencies that benefit from the police enforcement may be those that tailor their business to the uninsured.

Gary Moore Sr., who owns Moore Insurance Agency and Family Auto Insurance, which has several branches, said he saw his business go up at one business but not both.

The Moore Insurance Agency is a standard insurance company, with one office on Corona Drive. Family Auto Insurance has two offices on Baldwin Boulevard, one on Leopard Street and another on Ayers Street. Those businesses, which sell monthly insurance policies, have seen a 10 to 15 percent spike in the past week, he said.

"It's a pretty good increase," he said. "I monitor it. It will take awhile to see if this lasts."